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PrimeSense's sensing technology, which gives digital devices the ability to observe a scene in three dimensions, was used to help power Microsoft's Xbox Kinect.
Apple's interest in PrimeSense was first reported in July by the Israel-based Calacist news website.
"Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans," a company spokeswoman Kristin Huguet told Reuters via email.
PrimeSense could not be immediately reached for comment outside regular U.S. business hours.
The PrimeSense deal makes it Apple's second purchase of an Israeli company. It bought flash storage chip maker Anobit in January 2012.
PrimeSense's investors include Canaan Partners, Silver Lake, Gemini Israel Funds and Genesis Partners, Bloomberg reported.
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